Welcome back USD500/MTD
In mid February, price in Singapore are slowly climbing up back close to USD500/MTD from earlier 2-3xx/USD level, some might interpret as signs of recovery of the shipping market , I am more concerned in how will that affect bunkering market in a practical level
- Do you have enough credit ?
Will the increase bunker price almost a double within a year, the same supplier who give you credit line lets say 500K which enough for 2000MT now could fix less than 1000MT. If you only purchase through one single channel and that channel fail to increase the credit limit then you will soon be exposed a credit deficit. While there are possibility that price might keep climbing then you might want to get prepared as soon as possible for the new credit line you might need.
2. Increasing possibility of quantity dispute
With the increasing bunker price , with increase incentive for all the personals gain activities both for vessel and bunker crew. Its almost a direct co-relation in my experience that the number of quantity dispute and the bunker price. In my old day of close to 700USD/MT 380cst. working as a new trader in Singapore, my phone ring routinely 2-4am 4 nights a week for almost 6 months. Be extra cautious on the operation while price keep climbing up.
Until next time
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